ADA Price Prediction: Bulls Target $0.270 in Breakout Morning Session

Key Insights:

• On Tuesday, ADA fell for the first time in five sessions, ending the day at $0.253.
• A lack of Input Output HK network updates left ADA in the hands of the NASDAQ Index and the broader crypto market.
• However, the technical indicators are turning bullish, signaling a possible return to $0.270.

ADA slipped by 0.39% on Tuesday. Following a 1.60% gain from Monday. ADA ended the day at $0.253. Notably, ADA saw red for the first time in five sessions.

Tracking the broader crypto market, ADA rose to a mid-morning high of $0.255 before falling into the red. Coming up short of the First Major Resistance Level (R1) at $0.258, ADA fell to a late afternoon low of $0.250. However, steering clear of the First Major Support Level (S1) at $0.249, ADA found late support to end the day at $0.253.

Fed Fear and the NASDAQ Index Weigh in an Improving Cardano Backdrop

Fed fear and the NASDAQ Index pegged ADA back on Tuesday. The reopening of the US markets drove demand for the dollar ahead of today’s FOMC meeting minutes. Investors are betting on hawkish minutes, which would affirm Fed plans to continue bringing inflation to target despite cracks appearing in the US economy.

However, the downside was modest. Price projections for January are hawkish. The launches of two algorithmic stablecoins and migration from centralized platforms to decentralized exchanges and self-custody support a bullish price outlook for ADA.

Investors also anticipate an influx of new projects onto the Cardano network that would drive adoption further.

Today, network updates and the US economic calendar will be the areas of interest. A lack of network updates could see ADA give up early gains. Hawkish FOMC meeting minutes and better-than-expected US economic indicators would fuel bets of another hawkish Fed rate hike in February.

ADA Price Action

This morning, ADA was up 4.35% to $0.264. A bullish start to the day saw ADA rally from an early low of $0.252 to a high of $0.265. ADA broke through the Major Resistance Levels.

Technical Indicators

ADA must avoid a fall through the Major Resistance Levels and the $0.253 pivot to break out from the morning high of $0.265. However, the broader market would need to support an extended rally.

In the event of an extended rally, the bulls will likely visit $0.270 for the first time since December 18 before easing back.

A fall through the Major Resistance Levels and the pivot would bring the First Major Support Level (S1) at $0.250 into play. Barring another sell-off, ADA should avoid sub-$0.250 and the Second Major Support Level (S2) at $0.248. The Third Major Support Level (S3) sits at $0.243.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

ADA sat above the 100-day EMA, currently at $0.259. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A hold above R3 ($0.263) would support a run at $0.270 and the 200-day EMA ($0.277). However, a fall through R3 ($0.263) and the 100-day EMA ($0.259) could reverse the morning gains with a slide through R1 ($0.255) to bring the 50-day EMA ($0.252) into view.